Chief
07-15-2008, 07:07 AM
http://www.theolympian.com/672/story/507035.html
Motorists cut back to save money, and that means less for road projects
By Adam Wilson
The Olympian
Published July 15, 2008
Record fuel costs are forcing people to drive less, and that is cutting into tax collections that pay for road construction statewide.
t's a cycle that might prompt state leaders to seek more money through tolls, shifting funds from health or environmental projects, or a new version of the tax on car values that voters rejected years ago.
"There are a lot of things going on in the world that affect our ability to put those projects out there. When we're getting a reduction in consumption, and this increase in prices, it's going to be a tough one for us," state budget director Victor Moore advised state Department of Transportation Secretary Paula Hammond recently.
Overall traffic was down 2 percent in March and 1.4 percent in May compared with 2007, according to vehicle counts from the DOT.
Less travel appears to be cutting into fuel tax collections. The state's biggest source of money to pay for road improvements is the 37.5 cent per gallon gasoline tax, and expectations for income have been cut by $95 million through next June.
"This is our stress. This is what's keeping me awake," Hammond said. "We are struggling now to deliver the projects we're supposed to deliver."
Lawmakers approved a 5 cent gasoline tax increase in 2003 and a 9.5 cent increase in 2005. Those increases were supposed to pay for 391 transportation improvement projects through 2012.
But construction costs increased by 60 percent in five years, as demand in India and China drove up prices for steel and concrete, and the cost of diesel fuel for construction equipment soared.
To avoid canceling any projects, lawmakers spent $3.8 billion in the past four years, said Rep. Judy Clibborn, D-Mercer Island.
Now, with people buying less gasoline, calling off some projects again is a possibility, said Clibborn, who also is chairwoman of the House Transportation Committee.
"I think we're done with the belt-tightening, and we've got to reprioritize our projects," Clibborn said.
The public approved the 2005 gasoline tax increase, voting down an attempt to stop it through initiative.
**SCHNIPP**
Waitaminnit!!
Isn't the Governor's goal to reduce traffic overall??
Isn't this really good news for the Environmentalists??
Doesn't this point out the folly of our State financial system very nicely? Since we have one leg missing from our financial stool (the Personal Income tax leg) these kinds of cyclic, erratic swings in budgets are absolutely inevitable when the economy softens significantly.
All of you Jim Moeller and Deb Wallace voters out there need to ask your candidates what their views are on these proposed tax increases. I expect the James campaign to weigh in as well, while the Probst Campaign will let the DemocRats do his work for him...
Developing...
cewl
Motorists cut back to save money, and that means less for road projects
By Adam Wilson
The Olympian
Published July 15, 2008
Record fuel costs are forcing people to drive less, and that is cutting into tax collections that pay for road construction statewide.
t's a cycle that might prompt state leaders to seek more money through tolls, shifting funds from health or environmental projects, or a new version of the tax on car values that voters rejected years ago.
"There are a lot of things going on in the world that affect our ability to put those projects out there. When we're getting a reduction in consumption, and this increase in prices, it's going to be a tough one for us," state budget director Victor Moore advised state Department of Transportation Secretary Paula Hammond recently.
Overall traffic was down 2 percent in March and 1.4 percent in May compared with 2007, according to vehicle counts from the DOT.
Less travel appears to be cutting into fuel tax collections. The state's biggest source of money to pay for road improvements is the 37.5 cent per gallon gasoline tax, and expectations for income have been cut by $95 million through next June.
"This is our stress. This is what's keeping me awake," Hammond said. "We are struggling now to deliver the projects we're supposed to deliver."
Lawmakers approved a 5 cent gasoline tax increase in 2003 and a 9.5 cent increase in 2005. Those increases were supposed to pay for 391 transportation improvement projects through 2012.
But construction costs increased by 60 percent in five years, as demand in India and China drove up prices for steel and concrete, and the cost of diesel fuel for construction equipment soared.
To avoid canceling any projects, lawmakers spent $3.8 billion in the past four years, said Rep. Judy Clibborn, D-Mercer Island.
Now, with people buying less gasoline, calling off some projects again is a possibility, said Clibborn, who also is chairwoman of the House Transportation Committee.
"I think we're done with the belt-tightening, and we've got to reprioritize our projects," Clibborn said.
The public approved the 2005 gasoline tax increase, voting down an attempt to stop it through initiative.
**SCHNIPP**
Waitaminnit!!
Isn't the Governor's goal to reduce traffic overall??
Isn't this really good news for the Environmentalists??
Doesn't this point out the folly of our State financial system very nicely? Since we have one leg missing from our financial stool (the Personal Income tax leg) these kinds of cyclic, erratic swings in budgets are absolutely inevitable when the economy softens significantly.
All of you Jim Moeller and Deb Wallace voters out there need to ask your candidates what their views are on these proposed tax increases. I expect the James campaign to weigh in as well, while the Probst Campaign will let the DemocRats do his work for him...
Developing...
cewl